U.S. Steel sweetens deal after USW says its contract offer falls short of Cleveland-Cliffs' proposal | Northwest Indiana Business Headlines | nwitimes.com

2022-09-03 05:33:22 By : Ms. carlen shu

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The United Steelworkers union said U.S. Steel's contract proposal falls short of the tentative agreement the union reached with Cleveland-Cliffs.

Both steelmakers are looking at four-year contracts. Cleveland-Cliffs is proposing an 8% raise the first year followed by 4% raises the next three years. U.S. Steel initially offered a 3% raise the first year followed by 2.5% raises the next three years.

U.S. Steel is now bumping up its pay increase to 13.6% over four years. It would pay a 3% increase for each of the first three years and a 4% raise in the last year of the deal. U.S. Steel CEO David Burritt said in a letter to steelworkers it was trying to be responsive to the union's request for more pay.

He said workers also would get uncapped profit sharing in the future after taking home $65,000 in bonuses over the last 18 months.

"Our proposal is a responsible approach to make our recent successes sustainable into the future," he said.

USW said the tentative pact with Cleveland-Cliffs that would have to be ratified by members includes no health care premiums, no network changes and no changes to cost-sharing such as deductibles, copays, coinsurance and out-of-pocket maximums. It also would eliminate a requirement for an employees spouses to elect their employer's coverage.

U.S. Steel is also offering a contract with no health care premiums so long as workers agree to change the current PPO Medical Plant network to the Blue High Performance network. The USW said that PPO plan offers more narrow coverage that eliminates coverage for out-of-network providers and excludes many hospitals and doctors.

The U.S. Steel proposal would reduce plan reimbursement for some high-cost specialty drugs unless the employee applies for copay assistance through drug manufacturers via the SaveOn drug program and eliminate coverage for high-cost specialty drugs procured through a physician, clinic or infusion center, according to the union. It would instead require specialty drugs be obtained through the Accredo Specialty Drug Program.

"Accredo would make decisions on whether the patient could self-administer the specialty drug or needed additional tests, instead of the physician or medical plan," USW said in an update to members.

Cleveland-Cliffs is offering no bonus but a 20% bump in pay over four years, which the USW characterized as "wages that are with you forever and count toward future earnings."

U.S. Steel said its latest proposal would increase pay by 10% in the first when the raise and bonus were added up.

"A $7,000 employee appreciation and signing bonus is money in your pocket now – allowing you to choose the best way to support yourself and your family in the immediate term," Burritt said. "As the saying goes – cash is king." 

U.S. Steel is offering a $7,000 signing bonus that includes $3,000 if ratified by Sept. 1.

"We told USS it can pay the $4,000 in a signing bonus, but we were not agreeing to this as written because USS did nothing for us during the height of the pandemic, as requested by the union," USW said in an update to members. "USS should have appreciated us during the heart of the pandemic, not when they’re trying to buy the contract."

Cleveland-Cliffs is promising $4 billion in investment in its mills over the next four years, while U.S. Steel has pledged $1 billion. U.S. Steel is proposing no change to the profit-sharing program that has brought in record-sharing bonuses for steelworkers in recent years, while Cleveland-Cliffs promised to maintain ArcelorMittal USA's existing profit-sharing program it inherited when it acquired that company in late 2020 in the latest round of industry consolidation.

Cleveland-Cliffs is offering no change to its sickness and accident policy while U.S. Steel wants to eliminate the recharge of eligibility after an employee returns to work for 60 days, even if the new disability is completely unrelated to the initial illness or injury that sent them home from work.

"Your bargaining committee made it clear to USS that we deserve a fair contract that reflects our sacrifices. We’ve worked very hard to achieve record profits that have greatly benefited executives and shareholders," USW said in an update to steelworkers. "Their proposal needs to reflect our contributions. Keep up the action. We need everyone’s support as we continue to push for what we deserve."

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Joseph S. Pete is a Lisagor Award-winning business reporter who covers steel, industry, unions, the ports, retail, banking and more. The Indiana University grad has been with The Times since 2013 and blogs about craft beer, culture and the military.

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